100 ECONOMIC PRINCIPLES

of the return he may expect to the cost of securing it.
Comparing different plans of cultivation which the nature of
the soil permits, he selects that which promises the largest
net return, the maximum surplus of value of products over
expenses of cultivation. It is this surplus out of which the
payment for the hire of the land must come, and, if he have
not included in the expenses of cultivation an adequate remuneration
 for his own labour the surplus must provide for
this also. In making his offer for the hire of the land, the
farmer will be guided by his estimate of the surplus it can
yield above the expenses of cultivation, taking one year with
another. He will endeavour to secure as much for himself
as he can, but, if we assume that there is competition among
would-be tenants, the amount he can secure as the price of
his own efforts will depend on what equally skilful competitors
 are content to accept as the price of theirs. We
shall see later that the amount thus chargeable as the price
of the managing-farmer’s services is capable of determination
on definite principles. Let us accept it, here, as a settled
amount. Then the surplus above-mentioned, after being
charged with the farmer’s personal remuneration, leaves a
balance which represents the most which can profitably be
offered for the use of the land. If competition for tenancies
be keen, the owner of the land will be likely to secure the
whole of this. If not, that means that the supply of men
able and willing to take the risks of hiring land for farming
purposes is relatively small, and that they are thus able to
secure advantageous terms as the price of their co-operation.
To recur to the possible variations of plans of cultivating
the land. It was stated that the plan selected was that
likely to give the greatest net return. If the object in view
in making the selection be the determination of the highest
bid which can profitably be made for the use of the land,
it is clear that the selection will be made as stated. It is,
however, assumed that the supply of capital and labour
needed to give the greatest net return can be secured. If
that be not the case, the selection of the scheme of cultivation
will be relative to the ability to secure capital and labour to
carry it out, and any competitor for the tenancy who has a